Target-orientated insolvency advice starts at a very early stage with the protection of the assets of the client from any access by other creditors. Structures have to be designed to protect the assets against potential effects of a future economical crisis with consequences for the private area of the client. In the frame of the asset-protection, concepts also have to be considered which take the transfer of assets e. g. as a gift to family members or other affiliated person into account, especially with regard to using the existing tax allowances by the German inheritance tax law. Problematic is the transfer of assets timely near to a threatening insolvency or an over-indebtedness with regard to the ineffectiveness of the measure as well as the criminal implications of such an action. Unfortunately, the closer the time of the insolvency crisis the more issues of appeal law or criminal law (intentional defrauding of creditors or preferential treatment of debtors) have to be taken into account.
Reorganisation and restructuring advice
In the crisis (operative crisis, earning crisis or cash crisis) itself complex discretionary issues may arise with regard to the insolvency (over-indebtedness, continuation forecast, solvency, cash balance sheet). The existing law provides a wide range of instruments which might solve the insolvency problem. This includes inter alia the participation of an additional investor, a loan waiver by the involved banks and / or the existing shareholders, a capital contribution by the shareholders, a letters of comfort or a subordination agreement. All these approaches have to be discussed with regard to their effectiveness in the individual case and with particular focus on the tax implication of the measure.
In the situation of a crisis or an insolvency advising of the management is of particular importance. Decisions have to be made by the management without exposing itself to personal liability our criminal charges regarding a delay in filing for insolvency or bankruptcy.
Representation of interests with regard to the insolvency administration
On the occasion of the insolvency of the debtor the creditor is exposed to the legal insolvency instruments of the insolvency administrator by challenging of former transactions of the debtor or various other forms of rights of recourse. Therefore, the adviser helps to develop procedures to minimize the own economic risk of the creditor.
The law office KNITTEL provides you with legal consultation in all periods beginning with the early stage and ending with the phase of crisis or insolvency. This will help you to avoid negative material consequences in such a procedure. Please bear in mind that the early contact with the legal adviser is very essential for the diversity and, in the end, the success of the measures.